Car Loan Calculator India — Calculate Your Auto Loan EMI
Calculate car loan EMI for new and used vehicles in India. Compare interest rates from HDFC SBI ICICI and other banks for 2026.
Car loans in India typically range from 7.5-12% interest depending on whether the vehicle is new or used your credit score and the lender. New car loans from banks offer the best rates at 7.5-9.5% while used car loans cost 10-14% and NBFC financing for used cars can go up to 16-18%. Processing fees range from Rs 500 to Rs 5000. Understanding your exact EMI helps you negotiate better and choose the right vehicle within your budget.
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Key Information
| Parameter | Details |
|---|---|
| New Car Loan Rate | 7.5% - 9.5% (banks) |
| Used Car Loan Rate | 10% - 14% (banks) |
| Maximum Tenure | 7 years (new) 5 years (used) |
| Maximum LTV | 90% new car 75% used car |
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Use Calculator NowFrequently Asked Questions
What is EMI for Rs 8 lakh car loan?
For Rs 8 lakh new car loan at 8.5% for 5 years the EMI is Rs 16384. For 7 years it drops to Rs 12729 but total interest increases from Rs 1.83L to Rs 2.69L. At 10% for 5 years EMI rises to Rs 16997. Always choose the shortest tenure you can afford to minimize total interest especially since cars depreciate rapidly unlike homes.
Should I take car loan from bank or dealer?
Bank loans offer lower rates (7.5-9.5%) but require separate application and processing. Dealer finance is convenient with instant approval but often charges 10-14% with hidden costs like mandatory insurance and accessories. Compare the total cost including processing fees insurance premiums and any mandatory add-ons. Bank loans also give you flexibility to negotiate car price separately.
Zero percent car loan — is it really free?
Zero percent EMI offers from dealers are never truly free. The interest cost is typically built into the car price meaning you pay a higher on-road price than a cash buyer. Compare: cash price with bank loan EMI versus zero percent EMI offer total cost. Often the bank loan with a negotiated lower car price works out cheaper. Always ask for the cash discount price before considering zero percent financing.
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Last updated: 24 March 2026